Speech by the Australian Deputy Prime Minister and Minister for Trade, The Hon Tim Fischer to the Boutique Wines of Australia Awards Dinner

Renaissance Sydney Hotel, 28 July 1998

Mr Ken Brimaud, President of the Association of Australian Boutique Winemakers; Mr Huon Hooke, Chairman of Judges for this year's wine show; The Hon. Peter Collins; ladies and gentlemen.

It is a great pleasure to attend this year's Awards Dinner - it allows me not only to join in celebrating the outstanding achievements of our boutique winemakers, but also to sample some of their wares. Giving speeches is, I'm pleased to say tonight, thirsty work!

The wine industry - a model for Australian exporters

As Minister for Trade, I want to congratulate all those engaged in the wine industry for the great success you have earned. It has been, quite simply, magnificent.

We have come a long way since Governor Phillip brought with him the first vine cuttings on the First Fleet. Australians have, since those days, made great progress in developing a palate for the finest wines, and in their ability to produce them. You only have to look at the phenomenal growth in the industry in the last decade to realise this.

In 1990 our wine exports were worth $114 million. Last financial year they had multiplied fivefold to reach almost $600 million. In 1997-98 exports reached $813 million. The industry is well on track to meet its own export target of $1 billion by the year 2000, and achieve a ten-fold increase in exports over the decade.

Your success has been a tribute to your efforts - in seeking out new markets, in refining new winemaking techniques, in adopting new approaches to the production, description and export of Australian wine. The industry has been assiduous in promoting its product internationally, and has funded its export drive through self-imposed export and promotional levies.

The export dividends are now evident. Take the case of Japan, where focused marketing campaigns have helped to increase consumption, an export boost which has to some extent compensated for reduced demand in markets elsewhere in Asia. And I hope the recent change in leadership in Japan will lead to increased efforts to fix the Japanese economy which is essential to our broad range of exports and which would further strengthen domestic demand for our wine exports.

I would like here to make special mention of the role played by you, the Boutique Winemakers of Australia, in these export achievements. Your products are the peak of the Australian vine - high-end and niche wines that are amongst the highest value-added products of the industry, and which have contributed greatly to establishing Australia as a power in world winemaking. As the market leaders, your role is essential in ensuring that consumers around the world acquire a taste for Australian wine, an awareness of its quality and range - and the habit of buying it!

How we are assisting the industry

The Government is committed to taking action to boost the achievements of the Australian wine industry.

I am aware of some concerns you may have about the future. The EU's proposed "reform" of its wine sector is not yet finalised, but early drafts of the Commission proposal include plans for a substantial increase in subsidies, designed specifically to meet the challenge posed by our, and other Southern Hemisphere wine, in the EU market. I have registered Australia's concerns about these proposals directly with Sir Leon Brittan, the Vice President of the European Commission, and we will keep on pushing our interests in Brussels.

New plantings in the United States, coupled with recovery from disease, will mean that very large amounts of new American wine will come on to the market over the next few years. Our own efforts in refining quality and diversifying markets, all will need to be maintained.

Taxation issues are also a key concern for the industry at present. While I am unable to foreshadow details of the Government's taxation reform package, I can emphasise that what Australia - and the wine industry - needs is a consistent, logical and fair tax system. That is what the Government's tax package will deliver and it is clear that no-one else on the political landscape shares this commitment at present.

The Government is committed to help increase exports into Europe and the Australia-EU Wine Agreement remains a fundamental element of our marketing strategy. We plan to make further progress towards finalising the few outstanding issues under that Agreement at a meeting with the Europeans later this year. Industry and government are working closely and harmoniously together in preparing our approach to the EU, to other wine producers, and in handling wine-related issues in multilateral trade policy.

Reforms being developed by the Government's Supermarket to Asia Council will also benefit the wine industry - promotion of electronic commerce as a vehicle for international trade, the establishment of air and sea export freight councils to address Australian export logistical problems, the creation of a single electronic window for AQIS, and customs export clearance to reduce red tape.

These are just some of the initiatives we are pursing to create the right environment for further export growth.

Conclusion

In concluding I would like to congratulate the industry again for its phenomenal success over recent years. You have set yourselves ambitious goals as an industry.

The Government has set itself one straightforward goal - to back up and consolidate your work as much as we possibly can.